Bank of America has today reported that net income at its global wealth and investment management division rose 31 per cent from $550 million at end-March, 2012, to $720 million for the first quarter of 2013. Net income in this segment rose $144 million between end-December, 2012, and end-March, 2013.  

Assets under management stood at $745.3 billion at the end of March, 2013, up from $698.1 billion at the end of December, 2012, and further up from $677.6 billion a year ago. The bank said it posted record asset management fees of $1.6 billion, up 9 per cent from the year-ago quarter.

Revenue increased 7 per cent year-on-year to $4.4 billion. This was driven by higher asset management fees related to higher market levels and long-term AuM flows ($20.4 billion), as well as higher transactional revenue and higher net interest income, the bank said.  

The pre-tax margin was a record 26 per cent for the first quarter of 2013, up from 21 per cent in Q1 2012. Meanwhile, the provision for credit losses decreased $24 million from the year-ago quarter to $22 million, fuelled by improvement in the home equity portfolio.

Non-interest expense of $3.3 billion remained “relatively unchanged”, the bank said, as higher volume-driven expenses and litigation expense were offset by lower other personnel costs.

For the group as a whole, net income rose year-on-year from $653 million to $2.6 billion. Revenue, net of interest expense and on a fully taxable-equivalent basis, rose 5 per cent to $23.7 billion, up from $22.5 billion a year ago.